Question

g Batterson Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 28,000 units, the lease cost was $697,200. To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

Answer 1

Answer:

Average lease cost per unit = $26.41 per unit (Approx)

Explanation:

Given:

Lease cost = $697,200

Sales volume = 26,400 units in a month

Find:

Average lease cost per unit = ?

Computation:

⇒ Average lease cost per unit = Lease cost / Sales volume

⇒ Average lease cost per unit = $697,200 / 26,400 units

⇒ Average lease cost per unit = $26.4090 per unit

⇒ Average lease cost per unit = $26.41 per unit (Approx)